Health insurance customers face ‘triple threat’ as renewal season looms

Private health insurance customers could be hit with premium increases of as much as 25 per cent and reduced benefits as the peak renewal season approaches, according to experts at Lockton Insurance Brokers Ireland.
Policyholders will also be hit with additional changes that could significantly impact their coverage and costs, Dermot Goode, head of healthcare at the group said on Monday. He also warned that the retirement of some popular plans, especially at VHI, could see people moved to more expensive options that may not best suit their needs.
“The culmination of these is likely to force thousands of policyholders to review their current plans and options,” he said.
While health insurers often cite average price increases, Lockton warned that these averages do not fully reflect the true impact on individual plans. In some cases, specific plans are seeing price hikes 50 per cent higher than the quoted average.
“Consumers are overlooking the cumulative effect of multiple price increases throughout the year,” said Mr Goode. “Depending on the plan, premiums could rise anywhere from 6 per cent to 25 per cent.
“For example, the Laya Momentum plan will see a 25 per cent increase by October, while VHI’s Advanced Care Extra plan will rise by 13 per cent.”
In addition, the health insurance expert cautioned that many consumers will also face reduced benefits.
Insurers have begun capping refunds for GP visits, consultant fees and alternative therapies, while also increasing excesses for private hospital treatments.
“VHI, for example, has capped GP visit refunds at €40, while Laya is increasing excesses on popular plans like Inspire Plus from €50 to €75 for day-case treatment,” said Mr Goode.
“These changes mean that consumers will now have to pay more out of pocket for less coverage.”
Lockton said another big shift is the retirement of older plans. VHI retired the Plan B Option series in May, affecting about 150,000 customers, while Irish Life Health retired 24 plans in September.
“When plans are retired, members shouldn’t just accept the first alternative offered,” said Mr Goode. “Many consumers may find better deals by shopping around or switching to more cost-effective corporate plans.
“With so many changes on the horizon, we are urging consumers to seek expert advice before renewing their health insurance. It’s essential to review your cover and make sure it still meets your needs.”